Over the past number of years there has been a market for companies with tax losses carried forward in Denmark.

In an attempt to curb this trade, legislation has been enacted which implies that certain methods for recapitalising a Danish company now may reduce tax losses carried forward by the Danish company. This is particularly so when the Danish company's shareholder is resident outside Denmark.

Companies with Danish subsidiaries should obtain advice in this issue if it is expected that a recapitalisation may be necessary at some stage.

This article is intended to provide general information, and no transaction should be undertaken without prior advice on the specific situation.

If further information is needed, please contact Senior Manager Niels Villadsen or Tax Director Verner Rasmussen on telephone +45 3927 7200 or by fax + 45 3927 2815.